The ex-Vice president of US investment banking JPMorgan Chase, Pang Huadong, has claimed that the blockchain technology “may be the key to avoiding the next global financial crisis,” reported the China Economic Times today.
Pang Huadong, who is now an honorary academic consultant at the Blockchain Asian Institute, remarked that his involvement with JPMorgan in the 2008 financial crisis had prompted him to consider that blockchain may well be the underlying technology for building transparency and reliability in the global financial system.
When I started working at JPMorgan in 2007,] 13 people managed more than $40 billion[in assets]…. when the 2008 financial crisis was at its worst, the average daily loss was $300 million. Only little by little did I realize that blockchain technology could be the key to avoiding the next global financial crisis.
Pang Huadong, ex-Vice president of JPMorgan Chase
Blockchain technology could help avoid the next global financial crisis, said Pang Huadong, the ex-VP of JPMorgan Chase
Huadong continued by saying that “while the technology is still at a very early stage,” its perspectives for growth are boundless. Pang Huadong considers that the core of blockchain’s breakthrough, more specifically, its property of developing decentralized and accountable systems can drastically mitigate global financial crises risks and “establish confidence-building mechanisms at the lowest cost.”
While the Chinese government’s stance on decentralized cryptocurrencies continues to be tough, the blockchain technology has been increasingly popular among leaders in politics, the academic sector, and the financial world. Moreover, even the Chinese president, Xi Jinping, has publicly applauded blockchain technology’s potential.
Additionally, only the past week, the Chinese Ministry of Science and Technology’s official journal informed that China would be leading an international research team focused on the Internet of Things (IoT) standardization and blockchain technology. Also, on July 16th, the assistant director of China’s Ministry of Information Technology called on China to “join forces” to encourage blockchain as a central technology within the new digital financial age and pleaded for alleviating institutional bottlenecks in optimizing the conditions for its successful integration.